De-regulation of the sugar sector, prompted by IMF demands, exhibits insufficient advancement.

ISLAMABAD: The federal government’s initiative for the complete deregulation of the nation’s sugar sector remains in a state of uncertainty, with no advancements achieved in the provinces regarding this issue.

The federal government opted to deregulate the sugar sector in accordance with the stipulations established with the International Monetary Fund (IMF).

The IMF deadline for sector deregulation is approaching, although the provinces have not yet enacted legislation as requested by the federal Ministry of Industries and Production.

Sources indicated that the International Monetary Fund established a deadline of March 2026 for deregulation. The federal government is mandated to completely withdraw from the sugar sector by June of this year.

The government of Pakistan, following deregulation, will refrain from intervening in pricing, procurement, or supply processes, thereby permitting the private sector to function autonomously.

All sugar management and commerce will be overseen by the private sector.

In instances of surplus production, sugar will be exported to provide improved pricing for sugarcane growers.

Post-deregulation, farmers will no longer be obligated to cultivate sugarcane and may sell their produce to any sugar mill nationwide.

A government prohibition on the establishment of a sugar mill will not be enacted. Following the deregulation of the sector, prohibitions on sugar exports will be removed.